Rait, Erwin John M.

Comparative Politics of Southeast Asian States

AB Political Science-4A 18 January, 2018

SOUTHEAST ASIAN STATES – GOVERNMENT SYSTEM, ECONOMIC SYSTEM AND

GOVERNMENT STRUCTURE

A. Government Systems of Southeast Asian States

Southeast Asian State Government System State Capital Current Leader

1. Brunei Darussalam Absolute Sultanate Bandar Seri
Monarchy Begawan
2. Burma (Myanmar) Authoritarian ruled by a Navpyidaw
Military Junta (Military
Dictatorship)
3. Cambodia Constitutional Monarchy, Phnom Penh
with Parliamentary form
4. East Timor (Timor Leste) Republic, with Parliamentary Dili
form
5. Indonesia Republic, with Presidential Jakarta Joko Widodo
form
6. Laos Authoritarian, with single Vientianne
party socialist rule
7. Malaysia Constitutional Monarch, with Kuala Lumpur
Parliamentary form
8. Philippines Republic, with Presidential Manila Rodrigo Duterte
Form
9. Singapore Republic, with Parliamentary Singapore
form
10. Thailand Constitutional Monarchy with Bangkok
Parliamentary form
11. Vietnam Authoritarian, with single Hanoi
party socialist rule

B. Economic Structures of Southeast Asian States

Southeast Asian State Economic System

1. Brunei Darussalam Heavily dependent on exports of oil and natural gas, the economy
contracted by an estimated 1.1% in 2015. The pace of GDP
contraction slowed from declines of 2.1% in 2013 and 2.3% in 2014
as oil and gas output edged up in 2015 after declining for several
years. Crude oil production rose by 0.2% to 126,800 barrels per day
and natural gas output by 4.9% to 1.4 billion cubic feet per day, owing
largely to the completion of maintenance on some aging wells and
pipelines.
2. Burma (Myanmar) Despite severe flooding, the economy continued to perform well in the
closing fiscal year. Growth is forecast to accelerate during 2015 on
recovery in agriculture and increases in foreign direct investment.
Among the near-term challenges facing the incoming government are
high inflation and wide fiscal and external deficits. Upgrading the
transport system is one of many longer-term challenges.
3. Cambodia Industry, particularly garment and footwear manufacturing and
construction, contributed strongly to 7.0% economic growth in 2015,
as did services. Agriculture was virtually flat because of drought.
Cambodia’s large supply of inexpensive, low-skilled labor has
attracted substantial foreign direct investment (FDI) into the
production of garments and footwear for export. Growth in such
 manufacturing accelerated to 9.8% last year.
4. East Timor (Timor Leste)
5. Indonesia Stronger public investment is expected to pull the economy out of a
slowdown that persisted in 2015. The government has increased
infrastructure funding and unveiled policy reforms to stimulate private
investment. Lower interest rates will help. Inflation is forecast to
decelerate by almost 2 percentage points this year. Further reforms
are needed to boost productivity, attract investment, and stimulate
new sources of growth.
6. Laos Having decelerated since 2013, growth is projected to pick up over
the next 2 years, lending support to the economy’s eligibility for
graduation from least-developed status by 2020. Inflation has ebbed
to its lowest in 6 years and is forecast to remain modest. Lower global
oil prices have helped to bolster a fragile external position, but
international reserves provide only a thin buffer against external
shocks.
7. Malaysia A broad economic slowdown last year is expected to continue
through 2016 before growth starts to pick up in 2017. Inflation is
forecast to rise after moderating in 2015. The current account surplus
is seen narrowing further this year. Significant progress has been
made toward strengthening the fiscal position, but achieving a
balanced budget by 2020 may require further action on both revenue
and expenditure.
8. Philippines The economy posted solid growth last year generated by strong
domestic demand, despite drag from net exports. Growth is projected
to pick up with higher investment and consumption. Inflation is
forecast to rise moderately as dry weather from El Niño presses
upward on food prices and utility rates. Sustaining strong growth will
require policy continuity supporting the development of infrastructure
and human capital, improvements to the investment climate, and
governance reform.
9. Singapore Economic growth slowed in 2015 prices declined, and the current
account improved. Growth is seen unchanged in 2016 and prices will
be lower, but an uptick in both is forecast for 2017 The external
surplus is expected to narrow in 2017 and widen next year. An
important policy challenge is to rein in high household debt, as
mortgage interest rates and falling property values could impinge on
financial stability.
10. Thailand Government spending revived economic growth in 2015, while
private sector activity and exports lagged. Growth is seen picking up
this year and next if planned infrastructure investment proceeds as
scheduled. Lower farm incomes from drought and weak agricultural
prices are weighing on private consumption. Consumer prices, having
declined last year, are forecast to nudge up. Falling•imports are
leaving sizable trade and current account surpluses while exports
remain weak.
11. Vietnam Vigorous expansion of manufacturing and construction in 2015
spurred the fastest economic growth in 7 years. Foreign direct
investment is seen supporting strong growth through the forecast
period. Inflation will revive but remain relatively modest. The current
account is forecast to slide into a small deficit. Reforms to banks and
state enterprises continue to make gradual progress, but an emerging
need is better management of rapid urbanization.